Business, general

U.S. and Japan in last-minute effort to reach chip accord

Article Abstract:

US and Japanese teams are in last-minute negotiations to extend the semiconductor trade agreement, which expires Aug 1, 1996. The talks involve US and Japanese government and industry officials and have been slowed by the Japanese insistence that the agreement is no longer necessary. When the agreement was first reached, only 9% of the chips in the Japanese market were made by foreign vendors. In 1996, about 33% of the chips on the market are foreign-made, with some 20% coming from US manufacturers. The US delegation, headed by Charlene Barshefsky, admits that the government's regulatory role may decline, but insists that it must continue to some extent. The US negotiators are now seeking assurances that US companies will continue to expand their market share in Japan. The talks have taken on a political significance, since Pres Clinton wants to maintain the image of having a firm stance on foreign trade, while Japanese Prime Minister Ryutaro Hashimoto wants to preserve a similar image, and both face elections.

Author: Sanger, David E.

Publisher:The New York Times CompanyPublication Name:The New York TimesSubject:Business, generalISSN:0362-4331Year:1996

Political activity, Barshefsky, Charlene

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U.S. is upbeat on chip deal with Japan; Clinton and Hashimoto hold a private meeting

Article Abstract:

Pres Clinton and Japanese Prime Minister Ryutaro Hashimoto held a private meeting in France to discuss the highly contentious issue of governing trade in computer chips. The current agreement, which was established between the Japanese government and the Reagan Administration ten years ago, allowed the US to penetrate the Japanese chip market. As a result, US companies have collected 30% of the Japanese market since 1986. The Japanese government has since refused to renew the agreement, contending that the problem is solved. This time around, the US is not seeking guaranteed access to the industry or a specific share of the chip market. Instead, Clinton is asking for an industry-to-industry agreement. Officials familiar with the conversation between Clinton and Hashimoto, which took place on Jun 27, 1996, report that they feel more optimistic that a deal will be made. However, according to public statements, Clinton expressed concern over the lack of progress.

Author: Sanger, David E.

Publisher:The New York Times CompanyPublication Name:The New York TimesSubject:Business, generalISSN:0362-4331Year:1996

U.S. and Japan renew a chip accord, but with changes

Article Abstract:

The US and Japan have signed a new three-year semiconductor trade agreement, and both parties feel that the accord is well balanced. The agreement permits President Clinton to claim that he has forced Japan into an accord that maintains the pressure for prolonged US expansion into the Japanese market. The Japanese signed the agreement after the US acceded that the two governments discontinue the practice of measuring the amount of Japan's market that has been secured by foreign companies. The new agreement is different from past accords between the two countries because it will be enforced by industry associations, rather than the two governments. Both governments will perform light supervision. The accord has been applauded by the American semiconductor industry. Other nations will be openly invited to participate in the trade agreements between Japan and the US, but must reduce their protective import tariffs to zero to do so.

Author: Sanger, David E.

Publisher:The New York Times CompanyPublication Name:The New York TimesSubject:Business, generalISSN:0362-4331Year:1996